PG Essays Mind the Gap
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Nov 17, 2023 Exploring the root cause of income variation and comparing income disparities between professions. The shifting dynamics of wealth creation and the role of technology in bridging the wealth gap. Examining the idea that increasing income variation is a sign of a healthy society. Exploring the relationship between wealth creation and overall societal prosperity.
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Extreme Skill Gaps Are Normal
- Exceptional skill creates huge gaps between the best and average in many fields like chess, art, and writing.
- Making money is also a specialized skill and shows similar extreme variation when people care enough to excel.
Wealth Is Created, Not Distributed
- Children learn a 'daddy model' that treats wealth as fixed and distributed by authority.
- In reality, wealth is created by people as goods and services, not just money passed down by parents.
Income Reflects Market Value
- Large income differences often reflect differences in how much wealth individuals create for others.
- Market prices already reveal what people will pay for particular skills, so 'worth' is market-determined.